The head of financials at Flash Memory Incorporated is preparing funding strategies of the company for the next three years. Increased working capital conditions drive the CFO to contemplate alternatives for additional financing.
Additionally, he must consider an investment opportunity in a new product line that has the possibility to be extremely profitable. Students must prepare financial forecasts, compute the weighted average cost of capital (WACC), estimate cash flows, and evaluate funding alternatives. This case is particularly recommended as a final exam instance for a typical MBA-level course in corporate finance. Areas Include: Capital Budgeting, Cash Flows, Fiscal Forecasting, Long Term Funding, Net Present Value (NPV), and Weighted Average Cost of Capital (WACC)
Publication Date: 08/20/2010
This is just an excerpt. This case is about Finance